R-2020-34 Amending the City of La Porte Investment Policy

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collateral was received by the Trustee. The collateral shall be held in the name of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. X. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed where practical are: A. Control of collusion B. Separation of duties C. Separation of transaction authority from accounting and record keeping D. Custodian safekeeping receipts records management E. Avoidance of physical delivery securities F. Clear delegation of authority to subordinate staff members G. Documentation on investment bidding events H. Written confirmation of transactions for investments and wire transfers I. Reconcilement and comparisons of security receipts with the investment subsidiary records J. Compliance with investment policies K. Accurate and timely reports L. Validation of investment maturity decisions with supporting cash flow data M. Adequate training and development of Investment Officers O. Review of financial condition of all brokers, dealers and financial institutions P. Staying informed about market conditions, changes, and trends that require adjustments in investment strategies Q. Monitor credit ratings R. Monitor FDIC status for mergers and acquisitions for brokered CD's COMPLIANCE AUDIT The City shall perform, in conjunction with its annual financial audit, a compliance audit of management controls on investments and adherence to the entity's established investment policies. The audit shall include a formal review of the quarterly investment reports by an independent auditor and the results reported to the governing body by the independent auditor. Also, the governing body shall review its investment policy and investment strategy not less than annually and adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and strategy, and recorded any changes made to them.